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Netflix (NFLX) stock declined sharply, falling about 10% in pre-market trading, following its first-quarter earnings release. The selloff occurred despite the top-line result exceeding consensus expectations.
For the quarter, Netflix reported revenue of $12.25 billion, a 16.2% year-over-year (YoY) increase that surpassed analyst forecasts. Earnings per share reached $1.23, nearly doubling from $0.66 in the prior-year period. This upside was driven by stronger-than-expected operating income, alongside a one-time $2.8 billion termination fee tied to its transaction with Warner Bros. Discovery (WBD).